https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Mon, 27 Apr 2026 11:12:09 +0000 https://boards.hellobee.com/topic/cash-out-refinance#post-2516371 Tue, 05 Apr 2016 16:46:39 +0000 FaithFertility 2516371@https://boards.hellobee.com/ <p>@Raindrop: to jump off anagram, our closing costs were so minimal compared to the lower rate and such, so definitely check it out!! :) </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516276 Tue, 05 Apr 2016 15:08:52 +0000 Modern Daisy 2516276@https://boards.hellobee.com/ <p>We took out a he loc to pay for our addition but only because we knew we could pay it off in full once it was completed. I prefer not to have two loans/payments out there. It might be cheaper for you to do this because refinancing will cost around $4-5k and our closing costs for the he line were minimal. And we got a better rate. But I think if you just want to take the equity out of your home to use as cash and have no intention of repaying it right away a cash out refinance might make more sense. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516262 Tue, 05 Apr 2016 14:49:36 +0000 kodybear 2516262@https://boards.hellobee.com/ <p>@Raindrop: i'd def inquire with some lenders then! its easy to do through email or a short phone call. i think thats the only way you will be able to get some concrete numbers and answers. good luck! :-) </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516252 Tue, 05 Apr 2016 14:45:00 +0000 Raindrop 2516252@https://boards.hellobee.com/ <p>@kodybear: Oh sorry I misread! :). Thanks for clearing that up. Yeah I did that already with the bank rate calculator. :) </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516232 Tue, 05 Apr 2016 14:25:52 +0000 kodybear 2516232@https://boards.hellobee.com/ <p>@Raindrop: oh haha i mean the low 3 percents, so like 3.25, 3.3 etc. thats just on nerdwallet though. after inquiring with a company, it looks like to get those rates, you need to bring in a coupel thousand for closing costs. which isn't too bad. not as bad as the original closing costs. but yeah i'd actually inquire about the rates with a company, because you might be surprised! like if you use that calculator on nerdwallet, you can get "instant rate quotes". so i'd see what you get for the new principal amount (with the cash out amount). maybe compare with and without the cashout amount and see what rates you get.</p> <p>ETA - <a href="https://www.nerdwallet.com/mortgage-rates" rel="nofollow">https://www.nerdwallet.com/mortgage-rates</a> this calculator.</p> <p>ETA #2- the company i've been corresponding with gave me a couple options. one was the rate that you see on nerdwallet, but you have to bring in a couple thousand at closing, the other options were higher rates, but lower out of pocket costs at closing. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516208 Tue, 05 Apr 2016 14:17:57 +0000 Raindrop 2516208@https://boards.hellobee.com/ <p>@kodybear: wow you have seen rates as low as 3%!!! That is pretty good. Though someone above did mention a cash out refi usually has a higher rate. :(</p> <p>Yeah we have a lot of equity.. It is crazy. We did put 20% down and tried to over pay the first few years. But really most of it is the crazy housing market right now. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516200 Tue, 05 Apr 2016 14:11:38 +0000 kodybear 2516200@https://boards.hellobee.com/ <p>i'm looking into similar options at the moment (refinancing, maybe cashing out). i'd definitely contact some lenders and see what the rates/closing costs/etc will be for your particular situation. that could help determine whether HELOC is better or cash out refinancing. the mortgage rates are so low right now tho,i think cash out is a better option, esp with so much equity. but i'm def not a financial advisor :happy: . i've seen rates in the low 3% for a 30 year fixed. you may have to pay a couple thousand for OOP costs though. i've inquired with some lenders through nerdwallet in the mortgage section. there are some low rates and good reviews for some of these companies. so i'd inquire and see what a good option is for you! </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516181 Tue, 05 Apr 2016 14:04:21 +0000 Raindrop 2516181@https://boards.hellobee.com/ <p>@Anagram: You know now that I think about it... maybe her rent back agreement was for 2 months and she wanted more time... She was pretty secretive about this whole process until afterwards... again she is kind of weird... but I understand she didn't want to jinx her home buying process. </p> <p>I'm a talker though so I talk to everyone and anyone about anything I'm planning to do ... just to get feedback. :) </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516153 Tue, 05 Apr 2016 13:52:08 +0000 Anagram 2516153@https://boards.hellobee.com/ <p>@Raindrop: ohhh yeah. the rent back has to be written in, and ideally, there should be a lease agreement--same as any lease agreement, specifying the length, the payment, etc. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516124 Tue, 05 Apr 2016 13:33:17 +0000 Raindrop 2516124@https://boards.hellobee.com/ <p>@Anagram: Oh so she was selling and wanted to rent back to buy her new place. The new buyers kept hounding her to move out... I think they were only letting her rent back for 2 weeks! So she felt she had to quickly buy a new place that she didn't think was right :( They could have moved to an apartment but she felt that was a lot of hassle.</p> <p>She ended up quickly buying another place, though she's trying to be happy with her new place ... she really needed a bigger place... they had a one bedroom with a baby and grandparent living with them... to a two bedroom place. So she's happy she got a bigger place but she's sad because now she sees better deals and she wished she was able to wait. :(</p> <p>I feel like this was all her retailors fault because when she was talking to me... her retailor said to sell before buying to have cash on hand to buy a better place and that rent back for a few months should be no problem. She felt she was totally lied to. :( </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516107 Tue, 05 Apr 2016 13:19:58 +0000 Anagram 2516107@https://boards.hellobee.com/ <p>@Raindrop: oooh, what was the terrible experience? I love to hear these stories. Rent back is super super common in our area, but my husband is VERY cautious about these things and did not want to do it (we were on the buying end), because he was convinced that major horrible things would happen to the house while the previous owners were still living in it, and we would all fight over it--like an appliance dying, or them damaging all the hardwoods, etc.</p> <p>On the other hand, I know a lot of people who have had a lot of success with it. It definitely seems better for the seller, who continues to live there while someone else owns it. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516103 Tue, 05 Apr 2016 13:17:06 +0000 Raindrop 2516103@https://boards.hellobee.com/ <p>@Anagram: Thanks for your comment!</p> <p>My coworker did the rent back situation you described and she had a terrible experience with that so she doesn't recommend it. She is kind of odd though so maybe I'll think about this more. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516101 Tue, 05 Apr 2016 13:14:46 +0000 Anagram 2516101@https://boards.hellobee.com/ <p>@Raindrop: okay, so I would call a few banks and get their mortgage fees for a cash out refinance. We looked into either opening a HELOC or doing a cash out refinance for me rental property and the clothing costs for a cash out refi were much higher than a regular refi. It ended up not being worth it for us.</p> <p>So factor in the closing costs when you run your numbers. You can also do a rent-back situation after you sell your house (you sell, but rent back from the new owner for 2 months or however long so you aren't rushed to buy). Then you have the cash in hand from your sale, but are unhurried. If you are in a hot market, people are usually very willing to do that, if you tell everyone up front that you are looking to rent back. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516097 Tue, 05 Apr 2016 13:08:16 +0000 Raindrop 2516097@https://boards.hellobee.com/ <p>@Anagram: Oh this is just an idea. I haven't actually done anything to move forward with this. Sorry! :)</p> <p>I'm just kind of trying to bounce this idea off of people and see if this a bad idea or not. If that makes sense. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516096 Tue, 05 Apr 2016 13:06:33 +0000 Anagram 2516096@https://boards.hellobee.com/ <p>@Raindrop: What are your closing costs associated with doing the cash out refinance? </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2516083 Tue, 05 Apr 2016 13:01:01 +0000 Raindrop 2516083@https://boards.hellobee.com/ <p>Bumping to see if anyone one had any pros or cons to this idea.</p> <p>DH said that he thinks the HELOC would probably be better than the cash out refi. Since what ever we borrow we would probably be able to pay back in 10 years before the big jump in payments. For now he wants just to keep waiting though. I guess I'm just getting antsy. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515364 Mon, 04 Apr 2016 19:50:08 +0000 Raindrop 2515364@https://boards.hellobee.com/ <p>@FaithFertility: Haha yeah I sometimes feel that I used all my housing karma on this house... we got it at a great price and I refi'ed about 3 years ago at a great rate. :) </p> <p>Now rates aren't as good... so it's something to consider if I do the cash out refi I would be loosing my awesome rate to a slightly higher rate. It's still better than our original rate which was 4.25% back when we first bought our place. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515345 Mon, 04 Apr 2016 19:33:49 +0000 FaithFertility 2515345@https://boards.hellobee.com/ <p>@Mrs D: Ohhh very true, I was reading it wrong as that was her new rate given! </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515344 Mon, 04 Apr 2016 19:33:31 +0000 Raindrop 2515344@https://boards.hellobee.com/ <p>@sunny: Hm.. I think we need a bit more than just the emergency fund but now that you mentioned it... we don't need that much more than what we have saved up now and if anything we can pay that off in 10 years if all goes well.</p> <p>So this does sound good because we can keep our super low payments for our current place and only borrow what we need for a possible new place and still have the comfort of knowing there is still money we can take out if we need it for an emergency without spending or loosing money on it. Very interesting. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515330 Mon, 04 Apr 2016 19:15:46 +0000 Mrs D 2515330@https://boards.hellobee.com/ <p>@FaithFertility: agreed but her existing rate seemed low ... So I wanted to make sure she was aware an increase 'could' happen with a cash out... </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515319 Mon, 04 Apr 2016 18:57:55 +0000 FaithFertility 2515319@https://boards.hellobee.com/ <p>@Mrs D: true but I think it matters too of your circumstance then and now, me and DH purchased this house when we didn't have the careers/credit we do now, even with cashing out our interest rate went from 5.6% to 3.3% </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515301 Mon, 04 Apr 2016 18:44:22 +0000 sunny 2515301@https://boards.hellobee.com/ <p>@Raindrop: I think it depends on what you need the money for. If you've got the cash for your new down payment but you're concerned about having $0 emergency fund in case of emergencies, then I think a HELOC makes sense because you use it as your safety net until you have time to build up your emergency fund again. You shouldn't need to pay interest unless you use it. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515286 Mon, 04 Apr 2016 18:30:08 +0000 Raindrop 2515286@https://boards.hellobee.com/ <p>@Mrs D: Thanks for the info! It definitely helps. More info the better I say! </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515284 Mon, 04 Apr 2016 18:25:40 +0000 Mrs D 2515284@https://boards.hellobee.com/ <p>Fyi...with a cash out refi your interest rate will likely be significantly higher than a standard refi...I'd bet .5%-.75% higher than a standard refi...</p> <p>We did this to pay down DHs student loans 18 mos ago and are no refi'ing again to get our rate lowered... </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515282 Mon, 04 Apr 2016 18:17:55 +0000 Raindrop 2515282@https://boards.hellobee.com/ <p>@sunny: A bunch of my coworkers are telling me to do that! </p> <p>But I don't see how that's better than a cash out refinance. Especially that most are 10 years interest only with a 25 year total loan term. In 10 years there will be a lot to pay... well unless you try to pay it down those first 10 years. </p> <p>I will think about this more. Thanks! Hehe. :) </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515278 Mon, 04 Apr 2016 18:14:33 +0000 sunny 2515278@https://boards.hellobee.com/ <p>What about getting a HELOC you can use in case of emergencies? I think you can just draw upon that if you need it and you're not paying interest on money that is just sitting around in your bank account. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515276 Mon, 04 Apr 2016 18:02:10 +0000 FaithFertility 2515276@https://boards.hellobee.com/ <p>@Raindrop: We just really wanted to do some extra work on the house and wanted to lower our monthly payment if we could... honestly didn't even look into second mortgage and the home line of credit was only if we took out a certain precent and we just didn't want to go that high </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515271 Mon, 04 Apr 2016 17:49:04 +0000 Raindrop 2515271@https://boards.hellobee.com/ <p>@FaithFertility: Yay glad it worked out for you!</p> <p>Mind if I ask why you didn't get a second mortgage or equity line of credit instead?</p> <p>Those apparently are my other options. </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515267 Mon, 04 Apr 2016 17:39:32 +0000 FaithFertility 2515267@https://boards.hellobee.com/ <p>We actually just did this!<br /> Our house is worth double than what we paid for it back in 2010<br /> We only took out $20,000<br /> But still hold Much equity and our payments are lower and we still owe way less than what our house is worth, to me it so worth it, extra money to do some projects and fix it up! </p> https://boards.hellobee.com/topic/cash-out-refinance#post-2515255 Mon, 04 Apr 2016 17:16:43 +0000 Raindrop 2515255@https://boards.hellobee.com/ <p>Talk me out of or into this situation. I just want to bounce this idea off on more people</p> <p>I feel we are just priced out of the houses we would be interested in the longer we wait. To be comfortable with making an offer and having some cash on hand for emergencies I would need 100k more to buy a house we want.</p> <p>I just learned about cash out refinances, were you basically refinance your house and take cash out during the process. If I think our place is worth what it says on housing websites we can take out about 250k and still have 20% equality afterwards. I’m thinking of taking out 100-150k so this should be no problem to get approved for.</p> <p>My rate is 3.37% which I won’t get again … looking at 3.7ish% right now, it seems. So there is that.</p> <p>Why not sell our townhouse? I don’t really want to be in limbo so I think taking out equality and looking at our own pace (aka not rushed) seems like the best plan for us instead of trying to sell and buy at the same time. </p> <p>Any thoughts? </p>